Cryptocurrencies are largely in the green Saturday as traders anticipate the Federal Reserve will cut interest rates next week and Bitcoin retests the crucial resistance point at $60,000.
Bitcoin price rose to $60k
Celestia (TIA) rose by 12% to $4.50, reaching a high of $4.59 — its highest swing since Aug. 31
Popcat (POPCAT) jumped to $0.80, 71% above its lowest level this month.
Pepe (PEPE), the popular meme coin, rose by 6% while JasmyCoin (JASMY)
MOTHER Iggy (MOTHER) rose by over 5%.
Altogether, the market cap of all coins tracked by CoinGecko jumped to over $2.20 trillion.
This recovery coincided with the performance across other assets. Gold jumped to a record high of $2,580 while American equities continued their rebound. The Dow Jones rose by 0.80% while the S&P 500 and Nasdaq 100 indices rose by 0.55% and 0.60%, respectively.
The performance happened after the US published encouraging inflation data on Wednesday, raising the chances that the Federal Reserve will start cutting interest rates on Sep. 18. The data showed that the headline consumer inflation dropped to 2.5%, its lowest level in over two years.
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Risky assets like crypto are expected to do well should the Fed cut rates, as they did in 2020 and 2021; they crashed when interest rates spiked in 2022.
MicroStrategy continued accumulating BTC
Bitcoin also rose after Michael Saylor revealed that MicroStrategy had acquired an additional 18,300 coins worth $1.1 billion.
It is the biggest corporate holders of Bitcoins with 244,800 in its portfolio.
You might also like: MicroStrategy buys additional 18,300 BTC for more than $1b
It also jumped as signs showed that whales and sharks were accumulating the coin. As we wrote, the volume of Bitcoin in exchanges continued falling, hitting the lowest level in years.
🥳 Bitcoin is within inches of regaining the coveted $60K market value for the first time since falling below back on August 29th. The dynamic duo of mid-term accumulation from sharks & whales, and falling levels of BTC on exchanges, sets the stage for crypto to roll again. pic.twitter.com/LHyxaK4Rci
— Santiment (@santimentfeed) September 13, 2024
Meanwhile, data from Nansen shows that stablecoin holdings by smart money continued falling.
The chart below shows that these holdings peaked in May 2022 as Terra and its ecosystem crashed, leading to a risk-off sentiment. It then peaked in November 2022 as FTX collapsed.
Smart money stablecoin holdings | Source: Nansen
Still, Bitcoin and altcoins like Celestia, Jasmy, and Pepe face a risk of Bitcoin forming a death cross since the spread between the 50-day and 200-day moving averages has narrowed.
A death cross could lead to more downside. For example, Ethereum has dropped by 15% after forming the pattern in August.
Read more: Bittensor tops crypto charts as AI tokens ride Nvidia wave
